India Revises Regulations for Shea Stearine Exports and Imports

The Directorate General of Foreign Trade (DGFT) has updated the Standard Input Output Norm (SION) E-125 for the export of Shea Stearine under the Foreign Trade Policy (FTP) 2023, as reported by several medias. These revisions address the importation of Shea-related raw materials, particularly Shea Nuts, and aim to align input quantities with the varying oil content found in the nuts. The changes are designed to improve resource efficiency in the Shea Stearine industry, which is utilized in sectors like pharmaceuticals and cosmetics, owing to its high melting point and stearic acid content. Shea Stearine is essential in manufacturing products for various medical applications, including treatments for herpes lesions. 

As part of the new regulations, the DGFT has introduced a requirement for customs to sample and test each batch of Shea Nuts for oil content, ensuring precise documentation for each consignment. The test results will be included on the bill of entry, and the import quantities will be adjusted based on the oil content of the Shea Nuts. This will help ensure that only the correct amount of raw materials is imported for Shea Stearine production. Additionally, the updated SION will remain valid until March 31, 2027, after which it will be reassessed to reflect changes in industry pricing dynamics. 

The amended SION E-125 specifies the new import entitlements required to produce one metric ton (MT) of Shea Stearine. These include 5.02 MT of Shea Nuts (with 45±1% oil content), 2.21 MT of Shea Butter, 0.048 MT of Activated Bleaching Earth, and 0.039 MT of Acetone, as reported by several medias. One key aspect of the revision is the introduction of a mechanism where the import quantity of Shea Nuts adjusts based on its oil content. If the oil content increases by one percent above 46%, the allowed import quantity decreases by 150 kg. Conversely, if the oil content drops by one percent below 44%, the import quantity will increase by 150 kg on a pro-rata basis. 

In a statement, Director General of Foreign Trade Santosh Kumar Sarangi clarified that regional authorities are now responsible for issuing authorizations based on the weighted average oil content as certified by customs. While customs authorities will conduct oil content testing, clearance for the import consignment should not be delayed until the test results are received. Instead, clearance should proceed upon customs examination and sampling. This update reflects the government’s ongoing efforts to streamline the import process while maintaining accurate resource management in the Shea Stearine industry.